Timing & trends
1. The Capital Flood & All-Time Stock Market Highs
by Michael Campbell:
A failed Turkish coup, Italian Banking crisis, Brexit surprise, bloody terrorist attacks & negative interest rates destabilizing Governments has money flooding from Europe seeking safety and some kind of a return. North American assets are the best looking nag in the glue factory and the torrent shoots Stocks to all-time highs. Meanwhile the big trigger looms….
2. “These are the danger signals and they are flashing now.”
Excerpts from this year’s (John) Templeton Prize recipient. A succinct and fantastic summation of WHY the West is in such decline and maybe, just maybe, how it might be great once again.
…..continue reading or listening HERE
3. The Terrifying $2 Quadrillion Monster Is Now Totally Out Of Control
The man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warns “The central banks are leading the world into a black hole and have no idea what a disaster they have created”


The entire global financial system is in jeopardy because citizens do not hold their political leaders to account. For the longest time, when the facts were uncomfortable societal leaders avoided them and citizens just shrugged and went along. Dangerously, that is a strategy that no longer works.
Michael lays out a good example where Politicians are going to do something to the CPP that will hurt a lot of people: Time For Concern

It wasn’t until a couple of years ago that the full meaning of today’s usage of the term “Denier” got through to me. Of course, the Left’s connotation has been the accusation that anyone who would deny catastrophic anthropogenic global warming would also deny the Nazi holocaust.
This is just plain nasty, and unsupportable.
Political Correctness is the most versatile authoritarian dogma ever invented. There is no limit to its intrusion. Anything the Left does not approve or like can be condemned. Imposition of power does not depend upon any rigid concepts in political or religious theories.
Skepticism has been the foundation of science and the Left condemns it as “denial”.
Anything old is revised, anything new is attacked. As the saying goes, “Orwell was right but got the date wrong”.
Some Earth-scientists would respond to the fervent message about Global Warming with “It’s been warming since the end of the last Ice Age. What’s your problem?” Finding this dismaying, climate politicians shifted over to Climate Change. Any weird weather could be blamed upon modern industrial life. The new original sin.
In today’s world, trying to control people through concepts of ethics or morality won’t advance your career. Being on the correct side of anything will advance your career.
The best definition of an authoritarian system is by modern physicist, Murray Gell-Mann:
“That which is not compulsory is prohibited.”
The evolution from Global Warming to Climate Change is not due to indifference or instruction from Geology. It is a subset of Political Correctness. As far as the “science” goes it ranks with the Earth-centric model of the solar system, alchemy and water-dowsing with a willow wand.
But, back to how could any sceptic be content or even pleased to labelled a “Denier”?
Quite simply, it’s not the first time that science has collided with authoritarian politics.
The most infamous was the Vatican’s insistence that the solar system revolved around the Earth. Denial was heresy and that was a capital offence.
Not yet as infamous is the equally spurious notion that changes in atmospheric CO2 “cause” Global Warming and/or Climate Change. Denial is heretical which must be silenced with ostracism, jailing or as one benighted professor in Europe calls for – the death penalty.
Dr. David Suzuki and Robert Kennedy Jr. want those who disagree with them placed in jail. Even reading this is an offence to the control freaks.
But for thousands of years, skepticism and dissent have been behind the advance of real science. Opposition to this has relied upon the powers of the state to curb independent research. And the state will always chose the dogma that enhances its power.
There have been a number of lengthy and eventually dislocating experiments in authoritarian government. The last one exhausted itself in the early 1600s when regionalism, individualism and practical science began to bypass bureaucratic ritual.
On the religious side, the change was called the Protestant Reformation and this has been the basis of pride in being a “Denier”, or in other usage a small “d” denier.
Those who began to criticize or condemn the corruption of the Catholic Church were small “p” protestors. What else would decades of venal corruption provoke?
Well, Nonconformists and Dissenters may have started without the capital letters, but the main point was opposition to the bureaucracy that had corrupted the Church. The same intolerant bureaucracy also corrupted the advance of science.
As with today, there was state-approved “science” and real-world science.
Francis Bacon is celebrated as the “father” of the scientific method. As he condemned state-sponsored science, he was not popular. He wrote:
“Such teachings, if they be justly appraised, will be found to tend to nothing less than a wicked effort to curtail human power over nature and to produce a deliberate and artificial despair.”
This could apply to today’s promotion that science is what the authoritarians say it is.
Bacon’s paragraph continued with:
“This despair in its turn confounds the prompting of hope, cuts the springs and sinews of industry, and makes men unwilling to put anything to the hazard of trial.[1]
Accomplished historical figures were proud of their denial of authoritarian science and so should “Deniers” be today.
[1] Bacon, Works, iii, 592-4, cf.IV.90; V.317-18

The European Central Bank (ECB) announced it will decide in the coming months whether monetary policy should be eased any further. Clearly, Draghi is completely losing control for he cannot entertain the remote possibility that negative interest rates will only cause hoarding and capital flight, and not stimulation. People only borrow when they see an opportunity. They do not borrow like governments with no rational thought whatsoever.
In the coming months, Draghi said a better assessment of the situation would become possible. However, Draghi also said at the press conference for the Governing Council meeting that there is a change in policy because the ECB rule prevents them from buying negative yielding bonds. With German 10-year moving negative, that means Draghi cannot buy anything from Germany. Draghi came out and said that if necessary he will use all “available instruments” meaning the rule to prevent the ECB from buying negative bonds will be abandoned.
The key rate was left as expected at a record low of zero percent. Draghi reiterated that interest rates will remain low, far beyond the end of the bond purchase program. The bond purchases in the amount of EUR 80 billion per month until at least March 2017 will continue until the inflation once again reappears. He has demonstrated that Europe is really screwed. He will not even consider that he is bankrupting pension funds while creating the next crisis and the elderly can no longer live off of interest. He has totally disrupted the world economy and has completely lost all sense of how to manage the economy.
More from Martin Armstrong: French Parliament – Nullified – Get Ready for More Civil Unrest
also from Mauldin Economics: Europe Is a Minefield
